Writes Far Eastern Economic Review:
From General Electric to Samsung Electronics to Toshiba, as well as thousands of Chinese companies, manufacturers are finding that using China as an export base is often more profitable–and almost always far easier–than selling goods inside the country.
The result is that China, once viewed by wide-eyed executives as the market of future riches, is instead becoming the world’s factory floor. China’s often-devastating competitiveness is helping to redraw the global corporate landscape, forcing companies around the world to scrap old business strategies–and some businesses altogether–and to come up with new ways to compete.
One upshot of China’s emergence as a manufacturing powerhouse: It’s becoming an increasingly powerful global deflationary force. China’s manufacturing prowess is pushing down prices on a growing range of industrial, consumer and even agricultural products that it sells around the world.
Look at the stats the magazine quotes, stating that China [is] the world’s fourth-largest industrial producer behind the United States, Japan and Germany, [and] makes:
– more than 50% of the world’s cameras
– 30% of the world’s ACs and TVs
– 25% of the world’s washing machines
– nearly 20% of all refrigerators.